with 
:set cursorline
in .vimrc (basically current .vimrc)

execute
vim a
then shift+o
now there's two lines (seen as underlined in xfce4-terminal)
this doesn't seem to happen editing .vimrc, but does in a .txt file, maybe syntax being on has something to do with it


$ vim --version
VIM - Vi IMproved 7.4 (2013 Aug 10, compiled Jun 21 2014 13:01:02)
Included patches: 1-335
Compiled by Arch Linux
Huge version without GUI.  Features included (+) or not (-):
+acl             +farsi           +mouse_netterm   +syntax
+arabic          +file_in_path    +mouse_sgr       +tag_binary
+autocmd         +find_in_path    -mouse_sysmouse  +tag_old_static
-balloon_eval    +float           +mouse_urxvt     -tag_any_white
-browse          +folding         +mouse_xterm     -tcl
++builtin_terms  -footer          +multi_byte      +terminfo
+byte_offset     +fork()          +multi_lang      +termresponse
+cindent         +gettext         -mzscheme        +textobjects
-clientserver    -hangul_input    -netbeans_intg   +title
-clipboard       +iconv           +path_extra      -toolbar
+cmdline_compl   +insert_expand   +perl            +user_commands
+cmdline_hist    +jumplist        +persistent_undo +vertsplit
+cmdline_info    +keymap          +postscript      +virtualedit
+comments        +langmap         +printer         +visual
+conceal         +libcall         +profile         +visualextra
+cryptv          +linebreak       -python          +viminfo
+cscope          +lispindent      -python3         +vreplace
+cursorbind      +listcmds        +quickfix        +wildignore
+cursorshape     +localmap        +reltime         +wildmenu
+dialog_con      -lua             +rightleft       +windows
+diff            +menu            -ruby            +writebackup
+digraphs        +mksession       +scrollbind      -X11
-dnd             +modify_fname    +signs           -xfontset
-ebcdic          +mouse           +smartindent     -xim
+emacs_tags      -mouseshape      -sniff           -xsmp
+eval            +mouse_dec       +startuptime     -xterm_clipboard
+ex_extra        +mouse_gpm       +statusline      -xterm_save
+extra_search    -mouse_jsbterm   -sun_workshop    -xpm
   system vimrc file: "/etc/vimrc"
        user vimrc file: "$HOME/.vimrc"
         2nd user vimrc file: "~/.vim/vimrc"
               user exrc file: "$HOME/.exrc"
                 fall-back for $VIM: "/usr/share/vim"
                 Compilation: gcc -c -I. -Iproto -DHAVE_CONFIG_H   -D_FORTIFY_SOURCE=2  -march=x86-64 -mtune=generic -O2 -pipe -fstack-protector-strong --param=ssp-buffer-size=4 -U_FORTIFY_SOURCE -D_FORTIFY_SOURCE=1      
                 Linking: gcc   -Wl,-E -Wl,-rpath,/usr/lib/perl5/core_perl/CORE  -Wl,-O1,--sort-common,--as-needed,-z,relro -L/usr/local/lib -Wl,--as-needed -o vim        -lm -lncurses -lelf  -lacl -lattr -lgpm -ldl   -Wl,-E -Wl,-rpath,/usr/lib/perl5/core_perl/CORE -Wl,-O1,--sort-common,--as-needed,-z,relro -fstack-protector -L/usr/local/lib  -L/usr/lib/perl5/core_perl/CORE -lperl -lnsl -ldl -lm -lcrypt -lutil -lpthread -lc       


